In the stock markets, when buyers push prices higher faster, there is often a correction that brings prices back down to levels that are attractive to new buyers so the market can go back up that much more. There are more than a few observers who see this as blatant manipulation of the markets but the reality nonetheless is that bull markets have a number of these 5% corrections in them. They aren’t bad things, until they turn into selloffs anyway.
Wednesday’s announcement by VerizonWireless that they were closing 2 Pittsburgh operations that would mean the loss of 1,000 jobs may have been a similar correction. Perhaps because we Pittsburghers haven’t been trained to think good things will happen here, the litany of good news about the region seemed like it was a bit much. We were long overdue for some good news but no region of the country is immune to ebbs and flows of growth. And when a city experiences a steady stream of successes, the leadership can sometimes get complacent or too aggressive. A dose of reality – not every business in any region is going to be on the way up – can be a very healthy thing. It’s not healthy for the people who have to find new jobs but when a business contracts it reminds us all that good times aren’t a certainty.
Regional confidence aside, the weather is making a quick start to 2014 almost impossible. Cranberry Twp. approved Sippel Development’s major mixed-use development at I-79 & Route 228 this week. The first of the projects to go forward will be the $45 million Pens practice facility/UPMC sports medicine complex, which PJ Dick should get rolling on in March. PJ Dick is also close to starting the $20 million Homewood Suites in the Strip District.
Hotel D2 has selected Franjo Construction to build its $5 million Cobblestone Hotel in Connellsville. The developer is still negotiating the contract for the Cobblestone in Millvale. Waukesha Pearce Industries selected the design and construction team for its new 38,000 q. ft. facility in Alta Vista Business Park on I-70. Desmone & Associates is the architect and General Industries will build it.